The removal from Canadian shelves of US-sourced spirits earlier this year led to a tumble in sales of over 65%, according to figures released this week.
Trade association Spirits Canada said earlier today (22 July) that from 5 March to the end of April, sales of US spirits by value in the country fell by 66.3% on the corresponding period a year earlier. The removal, which still remains in place in much of the country, came about as retaliation for US President Donald Trump’s implementation of a 25% tariff on selected imports from Canada, although this did not include alcohol.
The situation led to sales of spirits overall in Canada during the period declining by 12.8% in value terms, Spirits Canada said, with imported spirits from elsewhere besides the US down by a collective 8.2%.
Domestic spirits were not immune to the volatile environment, falling 6.3%.
“The North American spirits sector is highly interconnected, and the immediate and continued removal of all US spirits products from Canadian shelves is deeply problematic for spirits producers on both sides of the border,” said Spirits Canada’s CEO, Cal Bricker. “The current disruption demonstrates the critical importance of maintaining open, reciprocal trade relationships that benefit consumers, businesses and government revenues in both nations.”
Countering the US tariff, Canadian authorities introduced their own levy on imports – including alcohol – of 25% in mid-March. The hike coincided with “most” provinces removing US-sourced alcohol from their retail shelves, although Alberta and Saskatchewan have since returned them.
